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The Impact of the Implementation of Financial Risks Management on the Disclosure Quality of Financial Reports

Author

Listed:
  • Ghalya Metlej
  • Yahya Zalzali
  • Mohamad Farhat

Abstract

This study aims to demonstrate the impact of banking risk management on the quality of disclosure in the financial reports of a sample of Lebanese commercial banks by addressing the subject in its theoretical and practical framework and its relationship with internal and external auditing. To achieve this goal, the study relied on the descriptive and analytical approach, and a sample of directors of the risk management department and directors of internal audit departments in the banks under study was selected, in addition to a sample of account auditors affiliated with the Association of Certified Public Accountants in Lebanon. For the purposes of statistical processing, appropriate statistical methods were used and the statistical analysis necessary to complete the current study was carried out, using the Statistical Package for Social Sciences (SPSS) program to process the data and extract the frequencies, arithmetic means and standard deviations according to the study page, and to test the study hypotheses at a significant level (0.05 ≥α). The study found a positive correlation between the level of disclosure of financial risk and each of currency risk, interest risk, credit risk, market risk and operational risk, in addition to the existence of a close relationship between audit and risk management, and is reflected in the quality of disclosure so that the efficiency and effectiveness in banking work leads to controlling these risks and avoiding them in the future.

Suggested Citation

  • Ghalya Metlej & Yahya Zalzali & Mohamad Farhat, 2021. "The Impact of the Implementation of Financial Risks Management on the Disclosure Quality of Financial Reports," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(9), pages 1-61, August.
    • Handle: RePEc:ibn:ijefaa:v:13:y:2021:i:9:p:61
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    References listed on IDEAS

    as
    1. Mohammad I. Jizi & Robert Dixon, 2017. "Are Risk Management Disclosures Informative or Tautological? Evidence from the U.S. Banking Sector," Accounting Perspectives, John Wiley & Sons, vol. 16(1), pages 7-30, March.
    2. DeFond, Mark & Zhang, Jieying, 2014. "A review of archival auditing research," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 275-326.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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